Published 29 May 2018
The Nigerian marginal field development programme commenced with the 1996 amendment of the Petroleum Act which recognized the existence of the fields and provided for their farm-out. In pursuit of this programme, government embarked on retrieval of the fields from the major oil firms previously holding them, and awarding them to new bidders. But the key motive of the programme which is to develop the fields and boost petroleum production through them is scarcely achieved. The challenges of the marginal field companies like funding, technological and experience needs are rooted in corporate capacity, which underscores the need for corporate collaboration among the companies. This paper aims at discussing mergers and acquisition, a prominent aspect of corporate restructuring, and its prospects for companies engaged in marginal field development (“Marginal Field Companies”) in Nigeria. It proposes a decentralized merger regulatory structure as in place in USA, and also judicial and policy measures against the procedural burden of mergers and acquisition. The paper finds that mergers and acquisition can create corporate strength for the Marginal Field Companies to surmount their limitations in developing the fields, and also build competence for potential bidders for the fields.